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Pension in CZ, how much would be wise?

Has anyone looked into the pension system from Czech Republic? I'm working at a university and monthly a certain amount (percentage of the gross wage?) is subtracted in the form of 'Pojiseni Soci(alni?)'. In 2017 this will be 1365 CZK monthly for me. Would this be enough to sustain myself in CZ after my retirement?

Nick Schafstall

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The answer of FrankieF is quite precise for a non expert.
I am specialised on the financial market in the Czech republic and can explain you in details how it works and what does not work.
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Nick

15.39.37 06.09.2017

I'm no expert on the topic and it is very confusing but I believe that what you are paying into is social insurance, which isn't just the pension but gets pooled by the government and used to pay current pension, widow, disability etc (I'm not 100% sure on this). You wouldn't get all or even much of that back when you retire. But the state pension is something i don't know much about. If I had to guess, I'd say current pensioners get about 12,000kc per month

If you can afford it, it's worth paying into an additional pension scheme - the so called third pillar (or is it second pillar?). This is optional but arranged and subsidised by the government. If you put in at least 1000kc per month, the government puts in 230kc. Some employers will match your contribution up to a certain point, e.g. a few hundred crowns or one or two thousand. There is also a tax rebate on anything you put in above 12,000kc per year and up to 24,000 (increasing to 36,000 next year). The tax rebate means if you put in 12000kc you get no rebate, 24,000 would get you 1800kc rebate and 36,000 would get you 3600kc (assuming you do your own tax return or ask tell your employer). On top of the 1000kc you put in, 230kc from the government, ??kc from your employer, there is also growth because the pension provider invests it, e.g. could be 3-7% per year over several decades. You can choose various companies - it seems Allianz and Ceska pojistovna have performed well in the last few years but Ceska sporitelna, CSOB, ING, KB, and UniCredit also have pensions. As far as I know, they aren't backed by the government but highly regulated and hopefully those banks are "too big to fail", all being subsidiaries of European banks.

The ministry of labour and social affairs (MPSV) has a page in English available although it's probably just as confusing as what I have written because they changed the system in the last few years.

13.33.49 21.12.2016

Pension in CZ, how much would be wise?

Has anyone looked into the pension system from Czech Republic? I'm working at a university and monthly a certain amount (percentage of the gross wage?) is subtracted in the form of 'Pojiseni Soci(alni?)'. In 2017 this will be 1365 CZK monthly for me. Would this be enough to sustain myself in CZ after my retirement?

19.14.10 15.12.2016